Lawmakers condemn possible BP settlement

Oil is seen on the water from the deck of the Joe Griffin at the site of the Deepwater Horizon oil spill containment efforts in the Gulf of Mexico off the coast of Louisiana in May 2010.

Gerald Herbert / AP Photo

By TOM McLAUGHLIN / Daily News

Published: Friday, October 5, 2012 at 08:40 AM.

Lawmakers representing Northwest Florida reacted strongly Thursday to word that a deal is being discussed to give the federal government control over BP fine money — and tax deductions to the company responsible for the Deepwater Horizon oil spill.

Such a deal, it is feared, could blow up the painstakingly negotiated RESTORE Act passed by Congress in June and signed July 6 by President Barack Obama.

Cutting into the RESTORE Act would impact the highly anticipated flow of dollars to Gulf Coast states impacted by the 2010 spill that spread across the northern Gulf of Mexico.

“This is a federal power grab and a misuse of RESTORE Act funds,” said Bill Williams, a Gulf County Commissioner and president of the Florida Association of Counties.

Under the RESTORE Act, 80 percent of all fines paid by BP for violating the Clean Water Act would go to the five Gulf Coast states of Florida, Louisiana, Alabama, Mississippi and Texas.

The settlement agreement would move some portion of BP fines to the Natural Resource Damage Assessment for repair of environmental damage.

That could limit the damages assessed for economic damage, which would impact Florida and leave Alabama, Mississippi and Texas out of the settlement deal all together, according to Williams.

“I’ve never seen anything like it. It absolutely usurps the authority of the U.S. Congress,” Williams said. “It violates the Constitution, undermines the constitutional authority of Congress and is a massive blow to the Gulf Coast states.”

The settlement would also reduce the civil penalties BP must pay for its role in the spill and provide “a tax advantage for responsible parties including BP,” U.S. Rep Jeff Miller, R-Chumuckla, said in a news release.

“The RESTORE Act was a carefully crafted and balanced approach. It would be irresponsible for the Administration to try to side step the RESTORE Act,” he said.

Miller expressed outrage that Obama’s Justice Department would negotiate a deal so beneficial to BP.

“I find it repulsive that the President would attack Big Oil during the debate (Wednesday), all the while knowing that his Justice Department is negotiating a settlement with BP that could give the oil company hundreds of millions of dollars in tax credits,” Miller said.

Florida U.S. Sen. Bill Nelson, a Democrat, sent the president a letter in protest.

“I urge you to hold BP fully accountable for the harm it caused and send the bulk of the fines to the Gulf as directed by the RESTORE Act,” Nelson said. “Anything less would be an injustice to Gulf Coast communities.”

Miller and U.S. Rep. Steve Southerland, R-Panama City, were among several Gulf Coast congressmen who authored a letter to U.S. Attorney General Eric Holder.

The federal lawmakers said they viewed any effort to divert BP fines to NRDA as a circumvention of the authority of Congress and the President.

“The RESTORE Act is the result of a collaborative effort that included the communities hardest hit by the Deepwater Horizon oil spill,” Southerland said in a news release.

“To withhold justice from the people who live along the Gulf Coast and endured the economic nightmare of this disaster would be a blatant violation of the role of government,” Southerland’s statement said.

“I believe that fine monies should be processed through the Clean Water Act as was approved by Congress and signed into law by the President.”

Lawmakers representing Northwest Florida reacted strongly Thursday to word that a deal is being discussed to give the federal government control over BP fine money — and tax deductions to the company responsible for the Deepwater Horizon oil spill.

Such a deal, it is feared, could blow up the painstakingly negotiated RESTORE Act passed by Congress in June and signed July 6 by President Barack Obama.

Cutting into the RESTORE Act would impact the highly anticipated flow of dollars to Gulf Coast states impacted by the 2010 spill that spread across the northern Gulf of Mexico.

“This is a federal power grab and a misuse of RESTORE Act funds,” said Bill Williams, a Gulf County Commissioner and president of the Florida Association of Counties.

Under the RESTORE Act, 80 percent of all fines paid by BP for violating the Clean Water Act would go to the five Gulf Coast states of Florida, Louisiana, Alabama, Mississippi and Texas.

The settlement agreement would move some portion of BP fines to the Natural Resource Damage Assessment for repair of environmental damage.

That could limit the damages assessed for economic damage, which would impact Florida and leave Alabama, Mississippi and Texas out of the settlement deal all together, according to Williams.

“I’ve never seen anything like it. It absolutely usurps the authority of the U.S. Congress,” Williams said. “It violates the Constitution, undermines the constitutional authority of Congress and is a massive blow to the Gulf Coast states.”

The settlement would also reduce the civil penalties BP must pay for its role in the spill and provide “a tax advantage for responsible parties including BP,” U.S. Rep Jeff Miller, R-Chumuckla, said in a news release.

“The RESTORE Act was a carefully crafted and balanced approach. It would be irresponsible for the Administration to try to side step the RESTORE Act,” he said.

Miller expressed outrage that Obama’s Justice Department would negotiate a deal so beneficial to BP.

“I find it repulsive that the President would attack Big Oil during the debate (Wednesday), all the while knowing that his Justice Department is negotiating a settlement with BP that could give the oil company hundreds of millions of dollars in tax credits,” Miller said.

Florida U.S. Sen. Bill Nelson, a Democrat, sent the president a letter in protest.

“I urge you to hold BP fully accountable for the harm it caused and send the bulk of the fines to the Gulf as directed by the RESTORE Act,” Nelson said. “Anything less would be an injustice to Gulf Coast communities.”

Miller and U.S. Rep. Steve Southerland, R-Panama City, were among several Gulf Coast congressmen who authored a letter to U.S. Attorney General Eric Holder.

The federal lawmakers said they viewed any effort to divert BP fines to NRDA as a circumvention of the authority of Congress and the President.

“The RESTORE Act is the result of a collaborative effort that included the communities hardest hit by the Deepwater Horizon oil spill,” Southerland said in a news release.

“To withhold justice from the people who live along the Gulf Coast and endured the economic nightmare of this disaster would be a blatant violation of the role of government,” Southerland’s statement said.

“I believe that fine monies should be processed through the Clean Water Act as was approved by Congress and signed into law by the President.”